Toyota Industries to buy Oregon parts maker

Cascade rallied after announcing that it entered into a definitive agreement under which Japanese machinery maker, Toyota Industries, will acquire the company for $759 million as it looks to add to its key material handling business and broaden its global customer base.

The U.S. company, which makes load engagement devices and related replacement parts for the lift truck and construction equipment industries, has long been a supplier to Toyota Industries' materials handling business. In turn, the Japanese company is a major supplier to Toyota Motor (TM) and is part of the same group. Toyota Industries is paying $65 for each Cascade share, an 18% premium to the stock's Friday closing price.

Cascade which had revenue of $535.8 million for the year ended January 2012 has seen profits decline in recent quarters amid lower shipments to China and has been exploring a sale of the company since early this year. Toyota Industries expects to launch a tender offer for all Cascade shares outstanding no later than Nov. 5. The deal is expected to close by the end of 2012. Cascade Chief Executive Robert Warren will continue to head the acquired business, which will remain based in Fairview, Oregon, Toyota Industries said.

Warrent commented, “Our company has concluded that the offer being made by Toyota Industries Corporation, one of the world's most admired companies, represents an ideal combination of attractive return to our shareholders, continuing service to our customers, and stability and opportunity for our employees.”